The magnitude of the tax multiplier is ________ the magnitude of the government expenditure multiplier
A) greater than
B) equal to
C) smaller than
D) the inverse of
E) exactly one half
C
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In the above figure, if we begin at S1 and the Fed sells bonds
A) the price of bonds rises, and so does the interest rate. B) the price of bonds falls, and the interest rate rises. C) the price of bonds rises, and the interest rate falls. D) the price of bonds falls, and so does the interest rate.
In the U.S. taxes:
a. are higher as a share of GDP than in France b. rely more on sales taxes than on income taxes c. have higher shares of social security contribution than in Europe d. none of the above
Discretionary fiscal policy
What will be an ideal response?
Exhibit 23-1 Nation of Padia
?
Exhibit 23-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:
A. I B. II C. III D. IV